IRC Announcement: US$340 million loan from the ICB

13 December 2010

PETROPAVLOVSK PLC

IRC Announcement: US$340 million loan from the ICBC

Petropavlovsk PLC is pleased to note the announcement made by its subsidiary IRC Limited ("IRC") with regard to the signing of a debt agreement with the Industrial and Commercial Bank of China ("ICBC"). IRC's shares are traded on the Stock Exchange of Hong Kong Limited under the ticker code 1029:HK. The full text of the announcement may be found in full on the IRC Limited website at:

www.ircgroup.com.hk

Peter Hambro, Chairman of Petropavlovsk PLC, commented on IRC's announcement, "I am very pleased that IRC has achieved this important milestone in its growth programme, both as a mine developer and as an independent iron ore producer. This third party funding has always been part of the Group's long term plan and Petropavlovsk remains a committed shareholder in IRC's success."

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